However, he hinted there would be more than £1 billion for social care, along with an extra £300 million for pubs and shops affected by the controversial rise in business rates.

The Conservative manifesto has committed the Government not to raise income tax, VAT or national insurance.

However, Mr Hammond is under increasing pressure to deal with the social care crisis and quell the Tory backlash against changes to business rates.

There have been calls for more tax cuts and greater spending after an expected downturn failed to materialise following the EU referendum last June, with the economy predicted to grow by 2 per cent this year.

Mr Hammond could increase taxes for self-employed people who currently pay less in national insurance contributions than employees, The Times report.

This may result in an increase of Class 4 national insurance from 9 per cent to 12 per cent. Duties on alcohol could also be increased under changes proposed in the latest Budget.

Mr Hammond is under increasing pressure to deal with the social care crisisCredit:
PA/John Stillwell

Mr Hammond signalled on Sunday that he will prioritise building up a Brexit safety net fund before launching a spending spree.

He also insisted he intends to ensure the country has enough resources in reserve to cope with any Brexit turbulence over the next two years.

Amid reports that he is planning to raise some taxes in the Budget rather than loosen the public purse strings, the Chancellor stressed the need for caution as the UK prepared to trigger two years of testing Brexit negotiations with the EU.

Praising the economy's "resilience" in the face of some gloomy post-Brexit referendum forecasts, Mr Hammond made it clear he was not prepared to take risks as the UK embarked in a new direction.

He told the BBC: "Remember, we have over £1.7 trillion worth of debt. This isn't money in a pot. What is being speculated on is whether we might not have borrowed quite as much as we were forecast to borrow.

"If your bank increases your credit card limit, I don't think you feel obliged to go out and spend every last penny of it immediately."